This is a test of the firing pin mechanism. Put on safety glasses. Remove the magazine and pull back the slide to confirm that the chamber is empty (including snap caps), put a new unsharpened pencil in the muzzle (eraser end first) so that the eraser rests on the breech face (where the firing pin hole is located). Point the gun muzzle up at the ceiling (and away from your face!) and pull the trigger. This tests center fire pistol ignition.
Caution: do perform this with a loaded gun, sharpened pencil, or near your face.
My 1911 45's will launch the pencil 3 feet up into the air. As will my Browning Hi Power, Ruger P94DC, and Springfield XD.
My CZ75 P01, S&W 38 snub nose, and HK P7M8 will make the pencil jump, but not quite far enough to clear the muzzle. All three of these guns have reliable ignition and adequate primer indentation. I think it means that these three guns have adequate firing pin force, but limited firing pin excursion.
I do this to test used guns to make sure the firing mechanism is functional. It is also a good test for a reassembled gun to make sure all the safety mechanisms and firing pin blocks allow the firing pin to move when the trigger is pulled. Failure could mean a broken firing pin, jammed firing pin, jammed firing pin block, inadequate main spring, or missing/broken internal parts.
I wish the P01 performed a little better at this test. I think it is because of the firing pin excursion being limited by the roll pin(s). I would not want to install a weaker main spring on this pistol.